Under Which Conditions Will an Investor Demand a Larger Return

question 124

Multiple Choice

Under which conditions will an investor demand a larger return (yield) on a bond?

• A) The bond issue is upgraded from A to AA.
• B) The bond issue is downgraded from A to BBB.
• C) Interest rates decrease due to decline in inflation.
• D) None of the conditions will cause an increase in the bond's yield.

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